APPLIED ASPECTS OF PERSONNEL STRATEGY PLANNING FOR SMALL AND MEDIUM BUSINESS ENTERPRISES

Abstract

Managers of small- and medium-sized businesses face many challenges, including how to achieve their strategic goals, how to attract and retain valuable employees, and how to improve their performance. One of the main ways to solve these problems is to plan the human resources strategy a business needs to maintain its sustainable competitiveness. This describes the relevance of the topic of this article. During the research methods of analysis and synthesis, induction and deduction, the comparative analysis of domestic and foreign experience in planning of personnel strategy of the firm were used. The aim of the article is to highlight the features of personnel strategy in small and medium-sized enterprises, development of flexible motivational system of employees, which would meet the market conditions and entrepreneurial activity of small and medium-sized firms. HR strategy of small enterprises includes such structural elements as planning the need for labor resources, personnel development, system of optimal regulation of labor relations, various forms of stimulation and remuneration of labor. A decisive place in the personnel strategy is occupied by planning of motivation of enterprise workers. It is suggested to use methods for motivation of employees on the basis of management by objectives; on the basis of the system of balanced indicators; antimotivation on individual and collective performance indicators as well as on behavior of employees. The algorithm of using the system of performance-based motivation of employees on the basis of management by objectives, known in international practice as performance management involves the definition of goals in accordance with the principle of SMART (specific, measurable, achievable, relevant, time-based). The mechanism of motivation on the basis of balanced scorecards involves top managers of the firm at a strategic session defining its goals by four components and indicators of achievement of specific goals, taking into account the goals of owners and the mission of the firm. Balanced scorecard includes financial component, client component, internal component, which defines indicators for improvement of internal processes of the firm to satisfy clients, and component for the purpose of training and growth of professionalism and competence of employees. The system of antimotivation employees of small firms is combined with the authoritarian management style of the firm and can be used as a tool to achieve quick, short-term results aimed at maximizing profits. The positive and negative effects of a system of antimotivation are considered. The choice of the optimal method out of the proposed ones depends on the owner's goals, corporate culture, enterprise strategy, type and sphere of entrepreneurial activity (production, commerce, services), available financial and organizational resources, the size of enterprise, etc. The practical value of this article is determined by the substantiation of planning areas of human resource strategy for small businesses, approaches to the use of different systems of motivation of employees, because small and medium-sized enterprises do not have special departments to work with human resources.